Bitcoin recently soared to a record high above $93,000, but on-chain data reveals a significant wave of profit-taking, mainly from long-term investors. Over $5 billion in profits have been realized in just a few days, raising questions about the future of the rally.
Whales Cash In on Bitcoin’s All-Time High
Bitcoin holders, particularly those in the U.S., have been taking profits between November 12 and 14, with daily realized gains surpassing $5 billion, according to CryptoQuant data. This selling spree comes as Bitcoin reached an all-time high, pushing past the $93,000 mark.
Notably, November 12 saw $5.1 billion in profits locked in as Bitcoin traded at $88,000, while the following days saw profits of $4.75 billion and $4.8 billion, respectively. These figures are historically significant, highlighting a major profit-taking event.
SOPR Ratio Indicates Profit-Taking by Long-Term Holders
The SOPR (Spent Output Profit Ratio) has surged to its highest level since August 2023, signaling that long-term “hodlers” are cashing in on their positions. This metric suggests that Bitcoin’s recent price rally may be reaching a local peak, with experienced investors preparing for a potential market correction.
Political Optimism Fuels the Rally
The Bitcoin surge is partly attributed to the political optimism surrounding the U.S. presidential election, with Donald Trump’s electoral victory on November 5 fueling market confidence. Trump, known for his pro-cryptocurrency stance, had made several promises to support the sector during his campaign.
Is a Correction on the Horizon?
Massive sell-offs like this are often seen as indicators of market peaks, with analysts speculating that a consolidation phase could be near. After a rise of over 450% since January, Bitcoin may need time to digest its recent gains before moving forward.
Despite these technical signals, the broader market fundamentals remain strong, supported by growing institutional adoption and a favorable macroeconomic environment. The question now is whether this profit-taking is a sign of the end of the current rally or just a temporary pause before further gains.
